PetSmart acquired by BC PARTNERS & CDPQ - CAISSE DE DEPOT ET PLACEMENT DU QUEBEC
Context
In December 2014, BC Partners announced the completion of its acquisition of PetSmart alongside a consortium including La Caisse de dépôt et placement du Québec and StepStone. The transaction followed a strategic review initiated by PetSmart’s board with the objective of evaluating alternatives capable of maximizing shareholder value. The take-private transaction brought the largest specialty pet retailer in the United States under private-equity ownership, providing BC Partners and its consortium partners with control of a scaled consumer platform operating across the United States, Canada and Puerto Rico. The transaction was structured as a leveraged buyout and valued PetSmart at an enterprise value of . The acquisition price represented a multiple of adjusted EBITDA, with PetSmart generating of adjusted EBITDA over the relevant twelve-month period. The company had also reported quarterly revenue of , illustrating the scale of the underlying retail operation. The consideration was financed through a combination of equity from the consortium and committed debt financing, while Longview Asset Management, one of PetSmart’s significant shareholders, supported the transaction and retained an interest alongside the acquiring consortium. From BC Partners’ perspective, the investment provided exposure to a large and established specialty retail platform benefiting from the structural growth of the U.S. pet-care market. PetSmart’s extensive store network, established brand recognition, diversified product offering and complementary service activities created opportunities to strengthen customer engagement and develop additional sources of growth. The transaction also gave the investor a platform from which to pursue operational improvements and execute the company’s recently established strategic initiatives outside the constraints of public-market ownership. Following completion, the consortium and PetSmart’s management were expected to focus on expanding the company’s retail and digital proposition, improving customer services and capitalising on continued growth in pet ownership and spending. The transaction therefore represented a major private-equity take-private in the U.S. consumer sector, combining sponsor-backed ownership with an established specialty retail infrastructure and a broad base of pet-care customers.
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Target
PetSmart, Inc. operates as a vertically integrated retailer of pet supplies and services across North America. Its business model combines a dense brick‑and‑mortar network of more than 1,500 stores with an omnichannel platform that includes a proprietary e‑commerce site and a portfolio of digital assets. The company offers a broad assortment of pet food, health and wellness products, accessories, and ancillary services such as grooming, training, boarding, and adoption events. Revenue generation derives from product sales, service fees, and subscription‑based delivery programs. PetSmart’s value proposition emphasizes convenience and high‑touch customer interaction, leveraging in‑store expertise and online personalization to serve pet owners throughout the product lifecycle. The firm maintains a workforce of approximately 55,000 associates and operates additional specialized facilities, including over 200 PetsHotel boarding locations. Its strategic footprint spans the United States, Canada and Puerto Rico, complemented by a charitable arm, PetSmart Charities, which facilitates pet adoptions and supports animal‑welfare organizations.
Ent. Value
Equity Value
Multiples
EV / Revenue
EV / EBITDA
EV / EBIT
Historical Financials (USD)
Other operations with PetSmart
| Date | Acquirer | Target | Country | Sector | Deal Context |
|---|---|---|---|---|---|
| 05/2017 | PetSmart | Chewy | UNITED STATES | Media & Internet | In May 2017, the specialty retailer PetSmart completed the acquisition of all outstanding equity in digital pet platform Chewy, Inc. The buyout financing package combined $1.35 billion in 5.875% senior first lien notes and $650 million in 8.875% senior notes alongside an approximate $1.0 billion equity injection provided by PetSmart's existing shareholder group and available cash reserves. Initially announced on April 18, 2017, and closed on May 31, 2017, the transaction represents the largest e-commerce acquisition in the history of the pet care sector |
REFERENCES
Valuation range: EV 3b - 100b USD
Revenue range: 1b - 3b USD
EBITDA range: 500M - 1b USD
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Target: petsmart
Acquirer: bc partners / cdpq - caisse de depot et placement du quebec